Riding on a massive Modi wave sweeping through most parts of India, the BJP was set to return to power Thursday as it led in 298 seats while the Congress trailed far behind with 52, according to trends released by the Election Commission for all 542 seats that went to polls.

"Markets were initially enthused to see the election results falling in line with the exit polls. However, the run-up to the D-day was so sharp that it turned out to be a sell on news phenomenon," said Devang Mehta, Head Equity Advisory, Centrum Wealth Management.

Participants would now be keen to know the future course of action for bringing the economy back on track, solution to the liquidity situation, the union budget, onset and progress of monsoon in June and most importantly the earnings trajectory, he added.

According to traders, weak cues from other global markets and a depreciating rupee also weighed on investor sentiment.

The rupee depreciated 37 paise to 70.04 against the US dollar in afternoon trade.

Globally, bourses in Asia ended in the red. Indices in Europe were also trading on a negative note in early deals.
Brent crude, the global oil benchmark, was trading 1.79 per cent lower at $69.72 per barrel.